5 COMMENTS

Your comparison to stock doesn't quite work. With company shares it is possible to assess whether the stock is under-priced, over-priced or correctly priced, based on the company's profits etc. We can make the same kind of assessments of real assets. For example, if the price of a matchstick rose to that of a small car, we could safely say that it was overpriced, based on what we know about human preferences. We can't do this with bitcoin. It is impossible, as I understand it, to safely say what a sensible price for a given amount of bitcoin should be.

This means that you can't really say that Bitcoin was in a bubble earlier this year, as that implies that it was over-priced.﻿

50 BTC was being created every 10 minutes 3 years ago yet the price kept growing because the price was low, so the downward pressure was easy to overcome with new money. Now with these higher prices and 25 BTC every 10 minutes we would need A LOT of new money to move up. Anyways thanks for another great vid Jason!﻿